The United States and Japan will step up their defence cooperation to deal with the threat from nuclear-armed North Korea as tensions in East Asia remain high, officials from the two allies said on Thursday.

Debt shift plan is no trick: Pitt

Queensland's treasurer has wiped a third off the state's debt of $12 billion by transferring $4 billion to government-owned power companies, in a dramatic manoeuvre to keep Labor's election promise to cut the state's debt.

But Curtis Pitt insists the switch isn't a dodgy accounting trick, saying it's just one part of the Palaszczuk government's overall debt reduction plan.

Mr Pitt said the strategy, backed by independent economists, to transfer $4.1 billion worth of debt onto the "lazy balance sheets" of government-owned corporations Ergon, Energex and Powerlink would save the state $600 million over four years in interest repayments.

When asked whether the $4.1 billion would be wiped from Labor's election promise to cut $12 billion of general government sector debt in 10 years, Mr Pitt replied: "Absolutely."

"These are all about the important ratios we see of debt to revenue," Mr Pitt said.

Mr Pitt said the government's current ratio of 90 per cent was too high, while the government-owned corporations' levels of about 55 per cent were well below other private corporations, so they could take on more debt without adverse repercussions.

The treasurer emphasised the debt shifting was just one of several strategies to reduce overall government debt that would be revealed in the Palaszczuk Government's first budget, to be handed down on Tuesday.